Committee hears bill to clarify interactive teller machines are not bank branches

Rep. Ed Walls introduced House Bill 434 on behalf of banking interests, saying the bill would update Montana statute to clarify that interactive teller machines — high‑tech ATMs that connect customers to remote tellers by video — are not bank branches.

Supporters including Shane Scanlon of the Montana Independent Bankers Association and Maddie Tyson of the Montana Bankers Association told the Senate Business and Labor Committee the change mirrors 2024 FDIC guidance that ITMs should not be treated as branches for regulatory purposes. Scanlon said the machines can be used as regular ATMs but also allow customers to transact by video with an employee at a remote location.

Committee members asked about technical and safety details. Rep. Walls and proponents said ITMs use secure, typically hardwired internet connections, require a customer card and PIN like an ATM, and are usually sited in private, secure locations with cameras and other physical security. They described ITMs as likely to be used inside branch lobbies as a substitute for teller windows in some cases and as an option to provide banking access in small or rural communities where a staffed branch is not economically viable.

Senators pressed whether ITMs would replace tellers and whether fees would apply. Witnesses said banks generally view ITMs as a convenience rather than a replacement for branches; fee policies would match existing ATM practice (noncustomers may be charged; bank customers generally would not). Proponents said participating banks typically staff the remote teller function with the bank’s employees rather than overseas contractors.

No formal action or vote was recorded during the hearing. The bill sponsor and proponents said they consider HB 434 a statutory “cleanup” to reduce regulatory red tape and to reflect current industry practice.

The committee concluded the hearing on HB 434 and moved to the next agenda item.